Revenue Penalties for not Reporting Employee Expenses

Since 1 January 2024 employers have been required to report to Revenue with details of certain tax-free expenses and benefits paid to employees.  Specifically, any payments made directly to employees in respect of:

•           Travel and subsistence

•           Small benefit exemption

•           Remote working daily allowances

are required to be reported to Revenue on or before the day of payment to the employee.  This can be done through ROS or third party software.

In December 2023, Revenue agreed to operate a “service for compliance” approach for the first six months of the reporting requirement.  In practice, this means that Revenue will work with employers to support them to comply with their reporting obligations and that no penalties would be imposed where the reporting requirement was not complied with.  This approach will cease on 30 June 2024.

From 1 July 2024, Revenue will expect that the reporting requirements are adhered to.  Revenue will start to conduct compliance checks and will seek to apply penalties for non-compliance.  Revenue expect that all employers will be required to file these returns.  In the absence of a filing, they may be more likely to conduct compliance checks.

If you need any assistance in ensuring that you are complying with the Enhanced Reporting Requirements please contact your Purcell McQuillan contact.

This summary is intended as a general guide. No action should be taken without obtaining professional taxation advice. If you require any advice on the above, please do not hesitate to contact Purcell McQuillan Tax Partners Ltd on 01 668 2700 or email your usual PMQ contact.

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